Bill > HB311

This bill establishes a new general excise tax exemption for medical services in Hawaii by amending Chapter 237 of the Hawaii Revised Statutes. Specifically, the bill exempts gross proceeds from the sale of medical services from taxation, and defines "medical services" as services provided by professionals licensed under a wide range of healthcare-related chapters, which include licensing for various medical practitioners such as physicians, dentists, nurses, psychologists, pharmacists, and other healthcare professionals. The tax exemption will take effect upon the bill's approval and will apply to taxable years beginning after December 31, 2025, which means healthcare providers will not have to pay general excise taxes on their service revenues starting in 2026. This legislation aims to reduce the financial burden on medical service providers by eliminating the general excise tax on their professional services, potentially helping to make healthcare more affordable and accessible.

Health and Social Services

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=HB&billnumber=311&year=2026